Strategy, the former MicroStrategy and the largest corporate holder of Bitcoin (BTC), reported a record $21 billion operating profit for the third quarter on Thursday. Every dollar of it came from a paper gain on its Bitcoin pile.

Yet the company’s own scorecard moved the other way. Bitcoin per share, the number Strategy tells investors to judge it on, fell 3.7% this year even as total holdings grew 26%, leaving each share backed by less Bitcoin than in January.

Why a Record Profit Left Shareholders With Less Bitcoin

US accounting rules now make companies book the rise or fall in their crypto each quarter as profit or loss, sold or not. Bitcoin climbed during the quarter, so Strategy booked a $20.91 billion gain on its coins and $19.53 billion in net income, or $44.75 per share.

In July, BeInCrypto reported the same rules produced an $8.22 billion quarterly loss when prices fell. Back then, Bitcoin per share was still up 4.5% for the year.

Three months later it is down 3.7%. Strategy raised $21.23 billion in 2026, mostly by selling new shares, and sold $431.8 million of Bitcoin to help pay dividends and fund buybacks, the earnings release shows.

New shares only add Bitcoin per share when the stock sells for more than the coins behind it.

Where the Money Went Instead of Bitcoin

Strategy spent $2.04 billion this year buying back STRC, a preferred stock it sells for cash in return for a monthly dividend. It also built a $5.07 billion dollar reserve covering 3.4 years of preferred dividends and interest.

Weekly Bitcoin purchases dropped 84% in two weeks earlier this month as those buybacks took priority.

“Strategy demonstrated its commitment to returning STRC to health,” CEO Phong Le said in the release.

Chief Financial Officer Andrew Kang leaves on November 5, with operations chief Reza Virasteh taking over on January 1.

Shares closed down 2.4% at $141.62 before the results and slipped a further 0.8% after hours, while BTC traded near $90,600 on Thursday evening.

MicroStrategy Stock (MSTR) Performance. Source: Yahoo Finance

Strategy says it wants to lead a market for what it calls digital credit, with its preferred stocks paying daily dividends from Nov. 1. The falling per-share figure shows what funding that machine costs when the stock trades below its coins.

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